Chapter 9
Introduction to Quality,
TQM &
Quality Tools
1
Quality and Total Quality Management
• Quality is the ability of a product or service
to consistently meet or exceed customer
expectations.
A philosophy that involves everyone in an
organization in a continual effort to improve
quality and achieve customer satisfaction.
2
Quality
• Definition 1: The ability of a product or service to
consistently meet or exceed customer
expectations.
• Definition 2: a: Peculiar and essential character. b :
an inherent feature. c: degree of excellence. d :
superiority in kind. e : a distinguishing attribute. f :
an acquired skill. g : the character in a logical
proposition of being affirmative or negative. h :
vividness of hue.
• Definition 3: The ability to meet standards. 3
Quality Assurance vs. Strategic Approach
• Quality Assurance
– Emphasis on finding and correcting defects
before reaching market
• Strategic Approach
– Proactive, focusing on preventing mistakes
from occurring
– Greater emphasis on customer satisfaction
4
Dimensions of Quality
• Performance - main characteristics of the
product/service
• Aesthetics - appearance, feel, smell, taste
• Special features - extra characteristics
• Conformance - how well product/service
conforms to customer’s expectations
• Safety - Risk of injury
• Reliability - consistency of performance
5
Dimensions of Quality (Cont’d)
• Durability - useful life of the product/service
• Perceived Quality - indirect evaluation of
quality (e.g. reputation)
• Service after sale - handling of customer
complaints or checking on customer
satisfaction
6
Determinants of Quality
Ease of
Design
use
Conforms
to design Service
7
Determinants of Quality
1. Design, planned quality
Intension of designers to include or exclude features in a product or
service
EX: Designed size, actual durability
Customer input is accounted for
2. Conformance to design (standards), executed quality
The degree to which goods or services conform to the intent of the
designers
EX: Actual size, actual durability
Design for quality: Design with quality in mind
3. Ease of use
EX: Directions, instructions, training
4. Service after delivery 8
The Consequences of Poor Quality
• Loss of business
• Liability
• Productivity
• Costs
9
The Consequences of Poor Quality
• Loss of business: Customer quietly stops buying.
Customer complaints rarely reach to the upper
management.
• Liability: Due to damages or injuries resulting from
poor quality (design, conformance, ease of use,
service)
• Low productivity: Rework or scrap. More input but
does not increase the output.
• High costs 10
Why do we need quality?
• Quality makes customer happy
– Companies exist to “delight the customer”
• Poor Quality reduces productivity and increases
costs.
– “It is not quality that costs, it is all the things you do
because you do not have quality in the first place.”
[Crosby 1979]
• Quality is no longer an order winner, it is merely an
order qualifier.
11
Ethics and Quality
• Substandard work
– Defective products
– Substandard service
– Poor designs
– Shoddy workmanship
• Ownership of the work
– Substandard parts and materials
Having knowledge of this and failing to correct
and report it in a timely manner is unethical.
12
Total Quality Management
A philosophy that involves everyone in an
organization in a continual effort to
improve quality and achieve customer
satisfaction.
T Q M
• Continuous improving
• Involvement of everyone
• Customer satisfaction
13
The TQM Approach
• Find out what the customer wants
• Design a product or service that meets
or exceeds customer wants
• Design processes that facilitates doing
the job right the first time
• Keep track of results
• Extend these concepts to suppliers
14
Obstacles to Implementing TQM
• Lack of:
– Company-wide definition of quality
– Strategic plan for change
• Resistance to a change
– Customer focus
– Real employee empowerment
• Red tape
– Strong motivation
– Time to devote to quality initiatives
– Leadership
15
Six Sigma
• A business process for improving quality,
reduce cost and increasing customer
satisfaction.
16
Six Sigma Programs
• Six Sigma programs
– Improve quality
– Save time
– Cut costs
• Employed in
– Design
– Production
– Service
– Inventory management
– Delivery
17
Six Sigma Management components:
• Providing strong leadership
• Defining performance merits
• Selecting projects likely to succeed
• Selecting and training appropriate people
Six Sigma Technical components:
• Improving process performance
• Reducing variation
• Utilizing statistical models
• Designing a structured improvement strategy
18
Quality and Competitive Advantage
• More progressive organizations have realized
that high quality products/services is an
important source of competitive advantage.
• Competitive Advantage denotes a firm’s
ability to achieve market superiority.
• A strong competitive advantage provides
customer value, leads to financial success
and business sustainability, and is different
for competitors to copy.
19
Quality and Business Results
• Various research studies have shown that
quality-focused companies achieved better
employee participation and relations,
improved product and service quality,
higher productivity, greater customer
satisfaction, increased market share, and
improved profitability.
20
